quiz 1 - The proprietorship form of business organization...

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The proprietorship form of business organization Answer must have at least two owners in most states. generally receives favorable tax treatment relative to a corporation. combines the records of the business with the personal records of the owner. is classified as a separate legal entity. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? Answer Reduced legal liability for investors. Harder to transfer ownership. Lower taxes. Most common form of organization Which of the following is the best definition of an internal user of accounting information? Answer Investors who use accounting information to decide whether to buy or sell stock. Creditors like banks that use accounting information to evaluate the risk of lending money. Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. Managers who use accounting information to plan, organize, and run a business. Which of the following groups uses accounting information to determine whether the
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This note was uploaded on 02/19/2011 for the course BUS 201 taught by Professor Tomos during the Spring '11 term at Indian Institute Of Management, Ahmedabad.

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quiz 1 - The proprietorship form of business organization...

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